Mumbai (Commodities Control) - Cotton in Northern mandis slipped Rs 50/Maund, amid weak cues from International markets. Cotton prices were doubly affected due to weak local demand and massive arrivals of 19,000 bales of cotton in Punjab, Haryana and Upper Rajasthan, today.
Kapas was quoted at Rs 5000-5150, while cottonseed traded at Rs 2150-2300/Quintal. Cottonseed oilcake was priced at Rs 1900-1950/Quintal.
Trade witnessed negligible buying activity in the markets. The prime reason behind the dullness is the crash fall in overseas cotton prices. Exporters along with millers have come on the sidelines in expectation of further price fall.
Rapidly spreading Corona virus has now infected nearly 50 nations, resulting in panic across global equities and commodities markets. The fear of economic slowdown has led to weakness in demand; weighing upon cotton prices.
Cotton futures fell over 3% to a five-month low on Friday.Cotton contract for May fell 3.3%, to 60.46 cents per lb as of 0807 GMT in pre-market trading. The contract touched its lowest since September at 60.18 cents earlier in the session.
This decline on ICE cotton futures led to price fall in domestic cotton. Cotton March contract on MCX lost Rs 300 to trade at Rs 18,100.
(Commodities Control Bureau)